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DTN Midday Grain Comments 03/27 10:51
Soybean, Wheat Futures Higher at Midday; Corn Mixed
Corn futures are narrowly mixed Monday at midday; soybean futures are 8 to
10 cents higher; wheat futures are 7 to 14 cents higher.
David M. Fiala
DTN Contributing Analyst
MARKET SUMMARY:
Corn futures are narrowly mixed Monday at midday; soybean futures are 8 to
10 cents higher; wheat futures are 7 to 14 cents higher. The U.S. stock market
is mixed with the S&P up 10 points. The U.S. Dollar Index is 10 points lower.
Interest rate products are mixed. Energies are mixed with crude up 1.55 and
natural gas off 11 cents. Livestock trade is sharply higher. Precious metals
are weaker with gold off 25.00.
CORN:
Corn futures are narrowly mixed at midday with slightly weaker spread action
as trade tries to consolidate the gains from the end of last week, as well as
positioning as we head toward Stocks and Acreage reports at the end of the
week. Ethanol margins will need more help from unleaded to boost blender action
with a good start to the week so far as spring driving demand picks up. Basis
has continued to generally drift back higher. The daily export wire showed
112,800 metric tons (mt) sold to unknown destinations. Weekly export
inspections were disappointing at 666,325 mt. The second crop in Brazil is
heading toward the better part of the growing season with trade watching
forecasts into April for development with some concerns on the horizon in
Central Brazil short term. On the May chart we are solidly above the 20-day
moving average, which is now support at $6.30, and resistance is at the $6.45
high printed this Friday.
SOYBEANS:
Soybean futures are 8 to 10 cents higher at midday with weaker spread action
as trade works to ease the oversold conditions from the midmonth weakness as
Brazil pushes through harvest and oil tries to lead the product complex. Meal
is $2.00 to $3.00 lower and oil is 100 to 110 points higher. With South
American new-crop beans becoming available, export news has remained limited.
Weekly export inspections were decent, seasonally, at 888,707 mt. China values
have seen pressure as well with swine fever demand questions short term. Basis
has generally remained solid short term with the market still showing a
substantial inverse even with recent narrowing. May chart resistance is now at
the lower Bollinger Band at $14.22, which we have pushed back above at midday,
with support at the $14.05 fresh low scored Friday.
WHEAT:
Wheat futures are 7 to 14 cents higher with mixed spread action to start the
week as spring wheat leads with trade working to consolidate the Friday
strength as KC works back into the middle of the calendar-year range. Weather
will continue to support KC action with the western Plains to continue to
struggle with moisture to the east, while early spring wheat progress will be
limited. The dollar remains toward the lower end of the range, while Matif
wheat turns higher as well to support Chicago action. Little other change is
noted on the world scene for now as India presses into harvest and other
Northern Hemisphere weather issues are limited for now. Weekly export
inspections improved a bit at 392,484 mt. On the KC May Chart the 20-day moving
average is support at $8.16, with the Friday high at $8.61 1/4 becoming
resistance; these are being tested at midday.
David Fiala can be reached at dfiala@futuresone.com
Follow him on Twitter @davidfiala
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